MRT 3 project: Inekon’s loss, govt’s gain

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For calling for an open and transparent bidding in the supply of train coaches to the Metro Rail Transit III (MRT 3), the Department of Transportation and Communications (DOTC) was able to save P3.348 billion for the government.

DOTC Secretary Joseph Emilio Abaya made this observation in reaction to suggestions that the DOTC should have awarded the contract to supply MRT 3 with 48 coaches to the Czech Republic’s Inekon Group through a negotiated bid.

“The decision to bid the project out resulted in almost P3.5 billion in savings, without sacrificing the quality of the train coaches. Those savings can now be used in other programs, which will also improve public services. This is in accordance with our push for reforms and good governance at the DOTC,” Abaya said.

He added that Inekon had been blacklisted.


The Czech firm, Abaya said, was invited to participate in the bidding process but it declined despite the fact that it had purchased bid documents.

Czech Ambassador to Manila Josef Rychtar has charged that certain individuals demanded a $30-million payoff as a precondition for the award. Rychtar said the government then made sure that Inekon would not get the contract after he declined to go along with scheme.

But Abaya dismissed the allegation, pointing out that the accusation was made only after it became clear that the DOTC would proceed with the open bidding.

The winning bidder, Dalian Locomotive and Rolling Stock Co., offered to supply 48 coaches for $1.8 million each, or a total of $86.4 million. Inekon’s price was $3.355 million for each coach, or a total of $174.46 million for 52 coaches. That is equivalent to $160.8 million for 48 coaches.

The difference is $74.4 million, or P3.348 billion at the conversion rate of P45 to the dollar.

“That is how much the government saved, or would have lost, had the contract been awarded to Inekon without opening the project to other bidders,” Abaya said.

The DOTC project would have increased the number of trips per hour of MRT 3 to 24 from 20, which will translate to a 60-percent increase in the number of passengers transported per hour in one direction.

“This means that, from the current 23,640 people who can avail of the rail service every hour heading toward one direction, the project will make it possible for 37,824 passengers to enjoy this convenience,” the DOTC explained.

But Michael Arthur Sagcal, DOTC spokesman, said deploying the new trains cannot be done overnight.

“The project will take two to three years to complete because the LRVs [light rail vehicles]will still be manufactured,” he said.

At present, the rail line’s average daily ridership is over 560,000, and its highest single-day passenger count was 620,000.

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7 Comments

  1. Siony Camacho Bana on

    Nabuking kayo sa 30 million extortion plot, kung kaya nagpapalabas naman kayo na naka-save daw ang gobyerno, kundi pa kayo nabulita tuloy pa rin inyong pandaraya . wala ng maniniwala sa inyo .

  2. chris villanueva on

    I rather want to listen and believe to Czech Republic’s Ambassador, as we all know, Abaya is a politician who has all the galls to deny the allegation but no proof to support it. And people right now don’t need the invisible savings they need more trains get it?

    • Very true…
      How can you believe an agency with a long history of corruption…
      How disappointing of Sec Abaya in defending the crooks instead of going after them….

  3. They should have started it long time ago. People in the government do not think properly. Patapos na si Pnoy wala pa rin pagbabago. Puro dusa nalang ang mga mananakay ng MRT. Zero, nada, Zilch accomplishment because of to much corruption in the government the worst ever!!!

  4. If it is a bidding process then there doesnt need to be any meetings with any of these companies. We know when there is a meeting the price will go up because they will be asked for a kickback. When its a bid process they get the papers & work out what price they can do it at & so then submit the said papers. Why the need to have meetings, it seems for one reason to get their kickback. I would love to hear another reason, & please dont say to explain it more to these companies, these companies wernt born yesterday, its their business they know it inside out.

  5. Hunghang si Noynoy on

    Why did you waste your time to see and talk to Inekon for the first place, and only now that you guys realized that the government saved billions of pesos…come on, tell it to the marines!

  6. apolonio reyes on

    DOTC SECXY JOSEPH EMILIO AGUINALDO ABAYA BAKA NAMAN YUON GAIN NG DOTC AY TALO PA SA MALAKING BAYAD NYO SA PR FIRM PARA SIRAAN SI CZECH AMBASSADOR JOSEF RYCHTAR. TAMA NA ANG DALDAL AT PA EPAL AT NAHIHIRAPAN NG ANG MANANAKAY NG MRT AT LRT. PAKITA NYO SA TAO ANG KAYA NYONG GAWIN NI VITANGOL, DI BA MGA SECXY?